Fleet managers across the country should be aware the new accounting standards, as determined by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), are going into effect shortly.

LeasePlan USA CFO Dave Dahm recently stressed the importance of staying ahead of these changes, which can have significant impact on fleets.

“While fleet professionals aren’t going to be leading the charge, they will play a very important part,” Dahm said.

According to Dahm, the changes should have little impact on a fleet’s overall operations, but fleet managers should be prepared for the effect it will have on financial reporting.

Dahm offered a basic breakdown on the topic of new accounting standards:

• Why are these changes happening? The accounting boards want more financial statement transparency for investors (and other readers of financial statements).
• After more than a decade of discussions, new standards were issued by the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB).
• How will this affect companies? Off-balance sheet accounting for lessees will be eliminated.
• International convergence was not achieved.
• The benefits of leasing still exist.
• What can fleet managers do to get ready for the accounting standards changes? Fleet managers can use this checklist to stay on track.

Dahm suggests reading up on this complex subject to ensure companies are making the appropriate adjustments.

“If you want to get a better handle on the changes, download the eBook on the future of lease accounting,” he said. “The new rules are going into effect. Don’t get left behind.”

LeasePlan is a global fleet management and driver mobility company.